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Don't forget to sock some of the responsibility with the people who utilize those non-conventional financing options (with the exception of the "no-doc" loans when used for their intended purpose).

Again ... personal responsibility is a big player here. Just because someone makes rainbow colored widgets doesn't mean people have to buy 'em ... but there's always some sucker dumb enough to do it, then whine and cry when they look like an idiot because they have no idea how to make it work.

I'm curious, Renter, what your motive is in posting this flood of doom and gloom stories. Are you trying to talk people out of homeownership? Do you think NOBODY can afford a home?

What is the point of all this, or is there one at all?

Motive? What’s the motive for people posting in Pets and Animals? What’s the motive for people posting in Politics? Strange question Vrai, what’s the motive (reason) for a forum in the first place? Discussion? Banter? Debate? I guess my reason is that I believe, given the public information now available, this is really the first time on a national and local level that one can somewhat easily track economic indicators of a certain market that just a few years ago would be very hard, if not impossible to do. In this case, real estate. I have a personal theory that is supported by these indicators and given that this theory involves consumer and financial affairs I post in just such a forum. In an effort to prove my theory wrong, I seek outside input so that hopefully someone will post a question or make a point in which I have not thought of. This new question/post I treat as a hypothesis (or conjecture) and test accordingly.

“Doom and gloom” are subjective.
I think somebody can afford a home.
Buy one or as many homes as you want, but I see a few indicators that may suggest otherwise, your mileage may vary.

I can give you more examples of homeowners who are not in danger of losing their homes that you can give of those who are.

I have no concern over the homeowners that are in no danger of losing their homes. The factor I try to determine is how few homeowners that are in danger of losing their home have an effect on the market (real estate or otherwise)

The market is slow right now because people are afraid.

I disagree. I believe the market is slow because home prices became disconnected from historic fundamentals.

And they're afraid because the media has blown this out of proportion and turned it into a crisis.

If the media did not report the issue, would people that could not afford the home in the first place, now be able to afford it?

Normally a mortgage broker would go bankrupt and it wouldn't even make the news.

What if over 200 brokers/lenders filed bankruptcy, temporarily but open-ended halted major operations, or where acquired at extremely discounted prices relative to recent performance?

But because of the media vultures, now it's a catastrophe of colossal proportion and we're all going to be wearing a barrel and eating government cheese.

Please explain how the media caused an increase of option ARM loans in the past few years. Please explain how the media then set the terms of those loans.

Who do you, personally, know who has lost their home? You must know people who own - so how many of them are in trouble?

Personally, I know of no one that has lost their home. I do know that at least 22 homes in St. Mary’s are REO. I do know that at least 69 homes in Charles County are REO. Personally, I know 5 families that have been negatively affected by the downturn.

And the part that IS bad is the buyer's own fault. But the media picked it up like Summer of the Shark to take a poke at Bush and his "mishandling" of the economy.

Ding! I've been saying it over and over again - you MUST be an educated consumer, do your homework, and make wise choices. Those dingbats who bought more house than they could afford based on an ARM that was bound to reset at a much higher rate are the ones hurting. They did not do their research, had eyes bigger than their budget, signed anything just to get the instant gratification of getting what they wanted versus what they could afford, and now they have to pay the piper. I have very little sympathy, if any, for people like that.

Refinancing: Only for the privileged few

Refinancing: Only for the privileged few
Sure, now is a great time to refinance - that is, if you can still qualify. Here is what lenders are looking for.

NEW YORK (CNNMoney.com) -- The good news: mortgage rates are down. The bad news: it's much harder to qualify for a refinanced loan these days.

What's more, the borrowers who need to refinance the most - because their adjustable rate mortgages (ARMs) are resetting to higher interest rates - are among those having the most trouble winning approvals.

"I'm turning away about 60% to 75% of the clients who come to me for a refi," said Bob Moulton, president of Americana Mortgage Group on Long Island, N.Y. "Some don't have enough equity and others have bad credit scores."

During the boom years, lenders approved most anyone with a pulse. Not so today. Mortgage brokers recognize this and are now being very selective about the clients whose applications they choose to submit to the likes of Wells Fargo (WFC, Fortune 500) or Bank of America (BAC, Fortune 500).

Refinancing: Only for the privileged few
Sure, now is a great time to refinance - that is, if you can still qualify. Here is what lenders are looking for.

NEW YORK (CNNMoney.com) -- The good news: mortgage rates are down. The bad news: it's much harder to qualify for a refinanced loan these days.

What's more, the borrowers who need to refinance the most - because their adjustable rate mortgages (ARMs) are resetting to higher interest rates - are among those having the most trouble winning approvals.

"I'm turning away about 60% to 75% of the clients who come to me for a refi," said Bob Moulton, president of Americana Mortgage Group on Long Island, N.Y. "Some don't have enough equity and others have bad credit scores."

During the boom years, lenders approved most anyone with a pulse. Not so today. Mortgage brokers recognize this and are now being very selective about the clients whose applications they choose to submit to the likes of Wells Fargo (WFC, Fortune 500) or Bank of America (BAC, Fortune 500).

Refinancing: Only for the privileged few
Sure, now is a great time to refinance - that is, if you can still qualify. Here is what lenders are looking for.

NEW YORK (CNNMoney.com) -- The good news: mortgage rates are down. The bad news: it's much harder to qualify for a refinanced loan these days.

What's more, the borrowers who need to refinance the most - because their adjustable rate mortgages (ARMs) are resetting to higher interest rates - are among those having the most trouble winning approvals.

"I'm turning away about 60% to 75% of the clients who come to me for a refi," said Bob Moulton, president of Americana Mortgage Group on Long Island, N.Y. "Some don't have enough equity and others have bad credit scores."

During the boom years, lenders approved most anyone with a pulse. Not so today. Mortgage brokers recognize this and are now being very selective about the clients whose applications they choose to submit to the likes of Wells Fargo (WFC, Fortune 500) or Bank of America (BAC, Fortune 500).

This article has substance to it, most companies now are asking that the customer have a 401k or a life insurance with some cash value for a reserve to prove if they were to be late on payments they had a way to protect themselves from foreclosure. Right now the best way to Refi from my experience is through Fha, though the process is longer they ask for less of a credit score and restrictions.

Now is the time to refi, interest rates are low and the FHA just raised loan amounts.